New York State City/County Management Association What Information Technology Should Be Doing For Your Municipality! 2000 Annual Conference.

New York State City/County New York State City/County Management AssociationManagement Association

What Information Technology Should Be Doing For Your Municipality!

2000 2000

Annual ConferenceAnnual Conference

Barry Strock Consulting Associates, Inc.

2

IS ManagementThe New Millennium Keystone

IS as a Customer Service Provider Team Management The IS Function and Structure Communications People Issues Outsourcing


3

Information Systems Team

The New IS Team • People Skills • Business Skills • Technology Skills • Resource Skills


4

Decision Matrix: Cost, Quality, Risk, Outcomes

What is the 10 year average cost for capital and non-capital expenditures?

How complete is application functionality? What is the timetable for completion? How much PAIN is involved in implementation

and use? What are the risks of potential decisions? Just how important is IS management anyway?


5

A systematic strategy begins with an effective RFP process

RFP Development Pre-RFP Conference Submission and Evaluation of

Vendor Responses On-site Vendor

Demonstrations with City End-Users

Client-Site Visits with City End-Users

Corporate Site Visits

Contract Negotiations

There must also be MANAGEMENT COMMITMENT TO AN

IMPLEMENTATION PLAN


6

Rolling Ten Year Plan: A Reevaluation and Reinvestment Strategy

Item # Description 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

1A Administration / Finance Server 15,000 10,000 1B Office Automation Server 15,000 10,000 1C Print / Exchange Server 10,000 7,500 1D Proxy Server (Firewall) 10,000 7,500 1E City Hall Local Area Network 75,000 1F Wide Area Network (VPN Lease) 20,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 1G 60 New Desktop Computers [30/30] 45,000 45,000 1H Replace Computers 20/yr. @$1,500 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 1I Peripherals - Laser Printers etc. 15,000 10,000 1J Replace Peripherals 5/yr. @ $1000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 1K IBM AS/400 - Public Safety 40,000 40,000 1L IBM AS/400 - City Hall 40,000 40,000 2A Office Automation Applications 35,000 10,000 2B Core Finance Applications 125,000 125,000 2C GIS System Hardware & Software 50,000 50,000 25,000 25,000 2D City Clerk 20,000 2E Citizen Request System 15,000 2F Records Imaging Hardware & Software 50,000 25,000 30,000 Capital Totals 460,000 320,000 100,000 100,000 75,000 165,000 85,000 50,000 50,000 105,000

5 year CAPITAL totals: 1,055,000 10 Year CAPITAL totals: 1,510,000 Percent of 5 Year Budget: 0.92% Percent of 10 Year Budget: 0.66%

3 Training / Consulting 10,000 20,000 10,000 10,000 5,000 5,000 5,000 5,000 5,000 5,000 4 New System Setup Contingency 10,000 10,000 10,000 10,000 5 Software Maintenance/Programming 30,000 30,000 40,000 60,000 63,000 66,150 69,458 72,931 76,578 80,407 6 Equipment Maintenance 10,000 20,000 21,000 22,050 23,153 24,311 25,527 26,803 28,143 7 IS Related Personnel Support 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

Non-Capital Totals 70,000 90,000 100,000 121,000 110,050 114,303 118,769 123,458 128,381 133,550 5 year NON-CAPITAL totals: 491,050 10 Year NON-CAPITAL totals: 1,109,511

ANNUAL TOTALS 530,000 410,000 200,000 221,000 185,050 279,303 203,769 173,458 178,381 238,550 5 YEAR TOTALS: 1,546,050 10 YEAR TOTALS: 2,619,511

Percent of 5 Year Budget: 1.34% Percent of 10 Year Budget: 1.14%


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Comparative Costs of OptionsANNUAL GENERAL FUND BUDGET: 23,000,000$ CAPITAL and NON-CAPITAL EXPENSES OPTION 1 OPTION 2 OPTION 3OVER 10 YEARS without Network Incremental Development Replace CoreAVERAGE ANNUAL COST OF IS: 142,600$ 149,500$ AVERAGE MONTHLY COST OF IS: 11,883$ 12,458$ requiresAVERAGE WEEKLY COST OF IS: 2,742$ 2,875$ networkAVERAGE DAILY COST OF IS: 391$ 410$

% of BUDGET: 0.62% 0.65%

OVER 10 YEARS with NETWORK:AVERAGE ANNUAL COST OF IS: 170,200$ 181,700$ 262,200$ AVERAGE MONTHLY COST OF IS: 14,183$ 15,142$ 21,850$ AVERAGE WEEKLY COST OF IS: 3,273$ 3,494$ 5,042$ AVERAGE DAILY COST OF IS: 466$ 498$ 718$

% of BUDGET: 0.74% 0.79% 1.14%

Capital and Non-Capital Annual Costs

-

100,000

200,000

300,000

400,000

500,000

600,000

1 2 3 4 5 6 7 8 9 10

Year

Pro

jec

ted

Co

sts

w

/Ne

two

rk

Option 1 Option 2 Option 3

Note the % of budget expended on IS as a ten year average!


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Decision Matrix: Cost, Quality, Risk, OutcomesOPTION Incrementalism Development Replace Core Apps10 Year AverageAnnual Cost forCapital and Non-Capitalexpenditures

$143,000 for RPG programmaintenance, IS support,hardware replacement

$170,000 with LAN

$182,000 for new RPGprogramming, programmaintenance, LAN, ISsupport, hardwarereplacement$149,000 w/o LAN

$262,000 for replacement ofcore accounting system, RPGprogram maintenance, financesoftware maintenance, LAN,IS support, hardwarereplacement

ApplicationFunctionality

Weak in core finance areas,poor integration.Satisfaction by Utility,Police and Fire users butcould be improved.

Could improve financeusability, but likely tocontinue to be limited inrange of functions. Putenergy toward public safetyimprovements.

Improve public safetyprograms. Migrate to robust,integrated financialapplications with ease of useand modern computer-basedtools for accounting andmanagement.

Timetable forcompletion andbenefit

Ongoing maintenance ofRPG programs. Nosignificant benefits.

One year to completion ofnew programming, ongoingmaintenance of RPGprograms. Improvedusability.

One year from new productstartup, reach peak levelbenefit in third year. OngoingRPG maintenance.

Pain ofimplementingand use

Finance doing significantmanual entry, and laboriousresearch.

Will not achieve thefunctionality of modernapplication software runningunder Windows

Training and adjustmentperiod, but usability willachieve productivity

Risk of chosendecision

High risk - Current financesystem is not providingtimely or accurateinformation. City is slidingbackward compared tobenchmark cities.Significant compromises inquality of information andcommunication. Wastingfinance human resources.

Medium risk- Singlecustomer dependent on 1person. Uncertainty ofamiable, satisfactoryreplacement. Splicing newcode onto system of olddesign. Not benefiting fromon going vendordevelopment of dedicated,competitive product.

Low risk-- proven financevendors with regular upgrades.Application quality tested incompetitive assessments.Customer drivenimprovements. Usingtechnology tools to providebetter query, reporting,presentation, timely andaccurate information. Toolsfor advanced analysis.


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Right-sizing for Size and BudgetGovernment IS IS Cost Per

Government Population Budget Budget CapitaCanby, OR 11,000 $5,000,000 $0 $0Lower Allen, PA 15,254 $4,900,000 $32,400 $2Schectady School 66,000 $69,000,000 $155,500 $2Madison, WI Wat 55,000 $12,600,000 $162,000 $3Portage, OH 145,000 $107,022,892 $463,259 $3Fulton, NY 55,000 $62,000,000 $199,766 $4Freeport, NY 40,000 $50,000,000 $405,650 $10Concord, NH 37,000 $37,000,000 $490,000 $13Athens/Clarke, GA 88,000 $100,000,000 $1,385,147 $16Schoharie, NY 31,000 $35,662,281 $496,000 $16Waukesha, WI 57,000 $15,000,000 $2,500,000 $44

AVERAGE $10

IS Director, Outside PopulationGovernment Programmers Contractors per

Government Population Budget and Analysts IS Staff/ConsltCanby, OR 11,000 $5,000,000 0 0 0Walkesha, WI 57,000 $65,000,000 12 3 3,800Schoharie, NY 31,000 $35,662,281 5 2 4,429Georgetown, KY Water 18,000 $5,200,000 0 3 6,000Athens/Clarke, GA 88,000 $100,000,000 13 1 6,286Freeport, NY 40,000 $50,000,000 4 2 6,667Lower Allen, PA 15,254 $4,900,000 1 1 7,627Elmira, NY 33,724 $20,300,000 3 0 11,241Concord, NH 37,000 $37,000,000 3 0 12,333Fulton, NY 55,000 $62,000,000 3 0 18,333Portage, OH 145,000 $107,022,892 4 2 24,167Schnectady School 66,000 $69,000,000 2 0 33,000Madison, WI Water 55,000 $12,600,000 1 0 55,000

IS cost per capita

IS staff per capita


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Comparison Municipalities

City Elmira Geneva Watertown Troy Ithaca Product MUNIS KVS KVS GE/Great Plains MUNIS Investment $400,000 $ 250,000 $500,000 $600,000 $400,000 Primary Benefits

Costing allows rigorous tracking of expenses against budget, controlled reductions of taxes and enhanced management without staff increases.

Year 2000 readiness, modernizing accounting practices, bringing integration of functions together.

Year 2000 readiness, modernizing accounting practices, vision of enhanced service to taxpayers and citizens

Migrating from manual system to automation for cost savings and customer service, and better quality information for management of revenue and expenses

Automating government for process efficiency and accounting control

Other Networking of City Hall (LAN) enhances intra/interoffice communication and information sharing, leading to better internal and external customer service

Does your local government have the information tools to Does your local government have the information tools to compete and succeed in the face of competition for scarce compete and succeed in the face of competition for scarce resources?resources?


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Sample Timetable for Finance Installation

July August September OctoberNovember January

1999

Develop RFPIssue Letter toVendorsVendors

Release RFP.City holdspre bid conference

Client visitsand ContractNegotiations

Evaluate RFPsAndSchedule On-SiteDemos

On-SiteDemos Vendor

Installs

2000

LAN Install

When is a good time to implement a new system?

From contract signing: plan a minimum 6 months to implement

The Steps: Preparation, installation, training, testing, “go live”


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System Cost / Productivity Benefit

Information Technology Return on Investment

$(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

1 2 3 4 5 6 7 8 9 10

Year

Am

ou

nt

Capital Totals

ISS Salary & Fringe

Productivity

More productivity out of existing positions, or stable productivity with fewer positions – you may have a choice…


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The Measure of Success COST CONTAINMENT - to increase

efficiency and contain or reduce cost; STREAMLINE OPERATIONS - to increase the

productivity of existing personnel and provide policy makers with essential management information;

ENHANCED SERVICE - to provide employees with the tools to effectively represent and successfully deliver the services of government;

ACCOUNTABILITY - to provide clear cost and service justifications for services provided to citizens and taxpayers.


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A Cost Effective Solution Need an assessment and plan

– Familiarity with functions of application

– A good sense of “what is out there”– Link to present and future

Application is proven and has a secure future

Hardware meets industry standards and is low maintenance

Internal Staff and users are able to support application system


15

Cost Containment Investment in new information technology is not additive to government operations, but

should probably reduce or avert future costs. Assume that the annual increased requirements forced upon the City by Federal, State,

Regulatory and Court mandates is 10% per year, then without the aid of technology, it would be expected that the City would have to hire 10% additional clerical and administrative staff each year.

Over a five year period this increase would net out to a minimum of a 50% increase in

staff, plus the associated increases in cost of living and the extra fringe benefits these new employees would cost.

Investment in technology is a prudent “cost avoidance” strategy. A good system should

easily increase the productivity of the current staff and it should significantly reduce much of the redundant paperwork.


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Cost Containment Sampler Better cash and investment management. Up-to-the-

minute status of cash requirements would enable local government to have a more aggressive investment strategy;

Project and grant tracking: The government could track its services, payments, and process awards and reimbursements in a timely and accurate manner;

A modern purchasing system: Streamlined operations using on-line requisition and approval, and consolidation of purchases and using the bid process will save money;

A modern accounting system: Allows the budget to drive all financial reporting, as well as multi-year budgeting, and CIP budgeting and tracking. This should provide management with timely and accurate reporting, and allow the finance officer and accountants to do more advanced investment, analytic, and accounting work, resulting in more revenue, reduced expenses, and ultimately, effectively reducing the tax rate.


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Streamlining Departments and their

employees are the data owners and are responsible for its integrity

Data access should be on-line and real-time

Authorized users should have access to all common data [i.e., financials, payroll, personnel]

Departments should be networked via a common backbone

Citizens should have rights to public information via a counter top station or the Internet

General Ledger,Accounts PayableBudgetingPurchasing

Work OrdersJob OrdersComplaint Tracking

Accounts Receivable

E-mail,Legislativeproceedings,Council Agendas,DocumentTracking

Land UseBuilding PermitsCode ViolationsInspectionsGIS/Mapping

HOLISTIC INFORMATION SYSTEMSACCESS TODATABASE

PayrollHuman ResourcesPersonnelLeave Tracking

Ad Hoc Reporting

INFO

BACKBONE

Refuse feesPermit feesTaxesMisc. fees


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Provide Productivity Tools

Financials

Payroll/Human Resources

Personnel

Work Orders

CapitalProjects

Tax Assessment/Billing/Collections

FixedAssets

Receivables

GeographicInformation

Systems/Mapping

General LedgerAccounts PayablePurchasing, Budget

Job CostingFees, FinesCharges

Inventory

Solid Waste

Utility Billing/Collections/CustomerService

End User

INTEGRATED SYSTEM ACCESS


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Information Technology Principles Departments and their employees are the data

owners and are responsible for its integrity

Data access should be on-line and real-time

Authorized users should have access to all common data [i.e., financials, payroll, personnel]

Departments should be networked via a common fiber optic backbone

Citizens should have rights to public information via a kiosk or PC access through the Internet

Local Government should sell data in modes that are not normally available, such as CD-ROM, modem, or the Internet


20

Problems: People and Procedures

Users indicate that "work is not getting done because of system inefficiencies," and that they are perpetually in "crisis mode"

Employees administer local government in spite of the system, relying on the use of tools that are old, and not fully integrated, not well shared, and not well-managed according to basic information processing principles

Processing of almost all information is so cumbersome that it delays processes, yet does not control money or property

Time spent on these duplicative record collection and query tasks could be better spent on better administration of programs

People do not have access or tools to pass management information back and forth


21

Problems: Procedures, Process and Paperwork

Lack of benefit of a centralized and commonly shared information system

Data Processing model -- Preoccupation is with collecting data, not easily retrieval and query

Lack of department access to on-line and real-time access to information about their budgets, expenditures or revenues

Many departments keep their own separate records Personnel records and functions are dispersed throughout

the various departments of the City resulting in duplication of efforts and inability to provide rapid access to the necessary information

Most data continues to move from department to department via hand delivery, fax, and voice communication


22

Problems: Productivity Many current system do not provide management with

rapid and effortless access to reports that provide cost of services and productivity information

Ad hoc query of the data is often difficult, printouts are usually lengthy, and consolidation of information is inefficient

Many current systems are unable to expand in capacity and function to meet needs of the local government and are obstacles to enhanced integration and services

Information Anarchy --information lacks coordination, integration, and direction

Governments often "use a trowel when it needs a shovel" in regards to its information processing capability

MOST PROBLEMS, however, are MANAGEMENT PROBLEMS of COMMITMENT and COORDINATION


23

Networking The Enterprise Problems

– responsibility for installation, configuration and maintenance

– deciding best tools and strategies for providing access

– determine how routers, bridges, and WANs affect performance

– deciding how much access to allow

Decisions? Servers centralized or

remain in departments? Central or department

control of administration central control of routers

and interdepartmental issues

standardizations of NOS and LAN/WAN hardware

centralized support and service with local First Responders


24

Major Transitions in I/T

Moving from hierarchical architectures to client/server distributed architectures

Moving towards high capacity connectivity through low-cost wide area networks

Moving from proprietary systems to standard integrating technologies


25

Consolidation and Centralization

Problems– System administration

– Support and Maintenance

– Location and organization of servers

– Security and control of data

– Management of Software Licensing

– Optimizing server and LAN hardware and configurations

– Reducing or eliminating downtime

Solutions– Department servers linked

to centralized super-servers– Central administration of

system-wide tasks– Departmental

administration of users– Centralized support- at right

level, with specialists and help desk, tools

– Centralized security policy, virus monitoring, optimization

– Centralized software licensing controls


26

Interoperability and Scalability Interoperability

– Relational database on desktop computer

– Relational database used on a LAN, UNIX or Windows 98/NT/2000

– Migrate to SQL-based system on LAN, UNIX or Windows NT

– Supports N-tier Client/Server – database independent, Operating System independent

– Browser-based

Scalability– Powerful migration path

for expansion and performance:

• Standalone PC• Local Area Network• Wide-Area Network• Client/Server system,

including PC, RISC, and Alpha systems

• Internet• Provides enhanced

security


27

What is a Network?

WAN Server

UNIX

Server

UNIX

IBM compatibleUNIX

IBM compatible

LAN Server

IBM compatible

IBM compatibleIBM compatible

WAN Server

IBM compatible

Server

IBM compatible


IBM compatible

Server

IBM compatible


IBM compatible

Server

IBM compatible


WAN Server

IBM compatible

Server

IBM compatible


IBM compatible

Server

IBM compatible


CIS Host Unitsfor WAN

Management

Ethernet

Routers

CIS: Wide AreaNetwork LinkagePublic Safety Division

NETWORKS

Administrative DivisionNETWORKS

Schematic of an Integrated"COMMUNITY OF NETWORKS"

---

= Operating System Independence= Application Sharing within Divisions

= Data Passing Between Divisions

Police Network

Fire Network


28

Networking Benefits– Flexibility in resource sharing: Strategically located printers and

input/output devices serve more users at less cost– Network programs easier to use and monitor --all data loaded

onto a file server(s). Data accessed through menus displayed on workstation screen.

– Central data storage eliminates need for employees to use floppy disks and reduces risk of loss or damage to disks or data. Software costs reduced by buying one network package.

– Networking provides an opportunity for interaction, collaboration, and file exchange.

– Networking facilitates group cooperation -- information from one workstation can be shared with other workstations.

– Networks enable immediate use of cable system.– Networking points us towards the future and centers on the

merging of local area networks (LANs) and telecommunications.


29

LAN/WAN Design Considerations detailed information on the activities performed by the

municipality types of users and access priorities, size of the network geographical distribution of network nodes frequency of use availability of LAN/WAN service equipment meantime-between-failure compatibility and interoperability of Internetwork

equipment with other systems it must connect to now or in future

availability of funds


30

Representative Data Traffic

Object StandardData amount

CompressedData Amount

1 Page business letter,Simple E-Mail Message orFinancial System TransactionRequest

5,000 bits (5Kb) 1,300 bits (1.3Kb)

20 page document withgraphics

40,000,000 bits (40 Mb) 10,000,000 bits (10 Mb)


31

LAN Design

Access protocols• access to media• rules and methods for communication between NICs

Topology• the manner in which cabling is laid out

Cabling• Bounded and unbounded media

– Concerns are length, attenuation, cross-talk, noise, & loss


32

Selecting a LAN Protocol - SampleWeighted Scoring for Selection of a LAN TypeFactor Ethernet Token RingFast Ether Arcnet FDDI/CDDI100 BASE-VGPerformance (10) 2 3 5 1 5 5Latency (10) 5 4 5 5 5 5Stability (10) 3 5 2 5 5 5Acceptance (5) 5 4 5* 3 4 4*Availability (5) 5 4 2* 2 5 2*Cabling Choice (8) 5 4 4 3 3 5Error Control (8) 1 5 1 4 5 2*Cost (7) 5 4 5 5 1 5Weighted Scores 233 260 230 226 266 271

Thin client or thick client? Performance vs. Cost?

Internet access, and Internet-based applications?


33

Selecting a LAN Topology

BUS -- each bit is broadcast to all other nodes• Linear -- cable segments joined with repeaters• Star -- cable segments go to multiport repeater called a

wiring concentrator or hub

RING -- each node is a repeater that transmits bits to its nearest upstream neighbor

• Simple Ring -- configured into a physical ring• Star-wired Ring -- Multi-station access unit that is

physical switching device hub


34

WAN Protocols

Operate between nodes on the WAN Used across communications links that

span long distances and use telecommunications

Generally point-to-point oriented (between sender and receiver)

Is full-duplex (transmits in both directions concurrently)


35

Types of WAN Protocols TCP/IP - Transmission Control Protocol/Internet

Protocol• ties many hosts into internetworks• strong interoperability

PPP - Point to Point Protocol• synchronous protocol• not restricted by speed

ATM - Asynchronous Transmission Mode• newest protocol -- very high throughput• potential for common LAN/WAN protocol


36

Graphical User Interface (GUI)

Extremely easy to use point and click Is based on industry standard Microsoft

Windows Creative and useful tools are readily available Data is available in multiple windows Pictures and text convey quality information Supports dynamic data exchange between

Windows-based applications


37

GUI Users...

work faster work better (complete

more of their tasks accurately) than Character User Interfaces (CUI) users

have higher productivity than CUI users

express lower frustration

perceive lower fatigue after working with microcomputer

are better able than CUI users to self-teach and explore

are able to learn more capabilities of the application


38

Paradigms for Change

OLD NEW Back Office Relationships and

Communication

Operational Mission-oriented Dictatorial Teamwork


39

Managing a game plan for change – the 7 impediments to change:

1. Lack of vision 2. Failure to handle the change curve 3. Defensiveness and threats 4. Bureaucracy – inter/intra group issues 5. Envy, conflict and distrust 6. Lack of support structure and working

environment for change 7. “Crabs” - people who prevent you from

doing new things


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Building an effective work environment

Structure supports identity Encourage autonomy - build implementation

plan with each employee

Creating support groups Mentoring and Training Leadership and honesty Replenish energy with recognition

methods


41

How do we get there? What are the missions and outcomes?

– What are Critical Success Factors? – Other opportunities and uses of organization and

data The users drive the process in satisfying

competing clients Good management is the art of getting

average people to do superior work

PLANNING: Attention to mission and to outcomes


42

ORGANIZING: Who is going to perform what function? Employee goals can be at odds with

organizational goals


43

DIRECTING is “hands on,” it is a one-to-one contact sport

Teamwork, supervision, productivity FOCUS is the MISSION You have to PULL, not PUSH

– Leadership: getting people to want to follow

No “bad guy” when expectations are clear -- no surprises!


44

CONTROLLING is measuring results and making adjustments

Analysis, standards, monitoring, feedback, correcting

Attention to OUTCOMESFaster service deliveryHigh client satisfactionReduction of errors and costEnhance service and build moraleEffective politics


45

Information Technology Recommendations

Demonstrate that management is 110% behind the project

Identify management opportunities and obstacles Work with managers on commitment and

coordination of efforts Pay attention to network infrastructure (LAN/WAN

and Internet), and standardize desktops on Windows 98 or Windows 2000

Make sure that core financial system is an effective tool for daily work flow and management analysis

Provide extensive application training to employees Convene re-engineering retreats

The First Aid Creed: “At least do no harm”


Thank you!

Barry Strock, PresidentJack D. Harris, Ph.D., National Director

New York State City/County Management Association What Information Technology Should Be Doing For Your Municipality! 2000 Annual Conference.

Documents

n outsourcing slide

cost containment slide

outcomes n

live slide

choice slide

internet slide

application system slide

implementation plan